X

Pro Perspectives 10/24/22

Pro Perspectives 10/24/22

Please add bryan@newsletter.billionairesportfolio.com to your safe senders list or address book to ensure delivery.  

 
October 24, 2022
 
About a fifth of the companies in the S&P 500 have reported on Q3 earnings thus far.
 
Over seventy-percent have beat earnings estimates, and about seventy-percent have beat revenue estimates. And despite the hot inflation, profit margins remain healthy at 12%.  That's above the 5-year average.
 
These are reports from a quarter that the Atlanta Fed's GDP model is now projecting to have grown by an annual rate of almost 3% (that's AFTER effects of inflation).
 
Again, as we anticipated coming into these earnings, the fundamentals don't match the performance of the financial markets.  The fear is outweighing the facts.
 
On that note, no one has introduced more fear into markets over the past seven months than the Fed.  And we will hear from them again on November 2.  
 
But the bigger event for markets, and the economy, by far, comes in two weeks.  The midterm elections.
 
A Democrat White House and Democrat controlled Congress has led to executing of the full Democrat agenda, despite the fiscal and inflationary consequences.  On November 8th, we should get at least a split Congress.  This will bring gridlock, which will bring stability and certainty to the fiscal outlook. That's historically good for stocks.
 
In fact, post-midterm elections, regardless of the outcome, are historically good for stocks.
 
Bancorp did a study on this:  Looking back to 1962, stocks (S&P 500) in the 12-months following a midterm election had an average return of 16%.  That's double the long-term average return.  And over these fifteen data points observed (over 60 years), ALL had positive stock market performance for the twelve-month period following the midterm election.
 
How To Capitalize On A Rebound in Stocks
 
My Billionaire's Portfolio is the only service in the world that gives the average person an opportunity to invest alongside the world’s greatest hedge funds and billionaire investors, while learning the tools of the trade along the way. It's a concept I call "piggyback” investing. 

Through the power of the internet, I get to share my insight and the moves of the best investors in the world, with investors of all levels. It gives me a chance to help empower the doityourself investor. 

My strategy is rooted in finding deep value stocks owned and controlled by billionaire investors. 

The process is pretty simple. I follow the most powerful and influential investors into stocks where they control their own destiny. When they win. We win. These investors specialize in the concept of asymmetric returns–i.e. they only want to spend their time in situations where risk is defined, and the potential profit is multiples of what they pay for a stock. 

But don't go out and blindly buy every stock a big-time investor buys. 

I hand-select only my top 20 stocks to invest in, and to include in the Billionaire's Portfolio, all of which are owned and influenced by a big billionaire investor. 

As a loyal Billionaire’s Pro Perspectives reader, I’d like to extend an invitation to join my premium advisory service. 

It’s a great deal for the money. And I think you’ll find it extremely valuable as we continue to step through an increasingly complicated investing environment. You can click here to subscribe

Categories: Latest
Bryan: